Financial situation, doom & gloom reports etc

[Guest]

So the sunday times reported it (the only people), bloomberg can't varify it as no one phoned them back IMMEDIATLY, the times couldn't contact G&H so it must be true.

They really think that RBS would take on the funding for a stadium which is supposed to be in place and also this debt as well, if numbers are to be believed RBS would be happy having £800m debt against a club that made approx. £30m last year. I do not see this being true.

They'll be banking on our huge potential. Am no financial expert, far from it, but can someone shed some light into this. Is this some sort of venture capital ??

[AFII]

United are 700m in debt, at worst we'll follow their scenario. They're banking on huge revenues and the fact that they'll be optimizing our marketing potential. Huge risk, but it's doable.

Still, they did talk a load of bollocks when they first came in. I'll be curious to see how they explain that to us fans now.

United already had a big revenue stream when Glazer bought them, we don't have that, so you can't compare us with United.

£30m-£40m isn't that much money for United, they can afford that and splash out £50m+ on players every season.

[sonsofthedesert]

They'll be banking on our huge potential. Am no financial expert, far from it, but can someone shed some light into this. Is this some sort of venture capital ??

No, the nearest term to how we could acheive it is junk bonds, we would be paying massive and I mean massive intrest. RS4 would have more knowledge than me but this is just a non starter, the amount of debt is too high.

[rushscored4]

They really think that RBS would take on the funding for a stadium which is supposed to be in place and also this debt as well, if numbers are to be believed RBS would be happy having £800m debt against a club that made approx. £30m last year. I do not see this being true.

Finance, whether £800m or £80000, is based on two things: security and servicibility. If the debt is secured by the stadium and/or the assets of the company and we can service the loan repayments from the increased revenue then I don't see what the problem is...

...except G & H promised us they wouldn't do it this way...

[tomasjj]

Oh dear, expect another wave of anti yank xenophobia, their not rich enough cowboy boot wearing scouse hating manc loving cunts. How ****ing dare they complete a business transaction?

They hate our club, they hate Rafa. We've sold our soul to the devil.

they are going back on a big promise they made when Moores agreed to sell to them...

if the above is true
lets wait and see

[sonsofthedesert]

Finance, whether £800m or £80000, is based on two things: security and servicibility. If the debt is secured by the stadium and/or the assets of the company and we can service the loan repayments from the increased revenue then I don't see what the problem is...

...except G & H promised us they wouldn't do it this way...

Yeah but for the time being it would be secured on our present stadium/club and we don't have the revenue stream to pay that kind of debt. They are talking about £500m costing nearly £30m a year so where would the money come from.

[biggidawg]

What were Moores and Parry thinking of when they agreed to sell to these guys who clearly havent got the money

they said they had the money and then transfered debt from one of their other business' aparently anyway...same as glazer at scum

[AFII]

they are going back on a big promise they made when Moores agreed to sell to them...

if the above is true
lets wait and see

Well, they lied so they could get rid of DIC. Moores is a **** businessman it looks like he made another **** business decision, if it's true of course.

[CharlieMansonsSquint]

Finance, whether £800m or £80000, is based on two things: security and servicibility. If the debt is secured by the stadium and/or the assets of the company and we can service the loan repayments from the increased revenue then I don't see what the problem is...

...except G & H promised us they wouldn't do it this way...

The scum haven't exactly fallen on hard times, have they?

[AFII]

The scum haven't exactly fallen on hard times, have they?

They had a big revenue stream when Glazer bought them, we are not even close to them when it comes down to that.

So, you can't compare us with United. We are still a long way off them.

[Guest]

The scum haven't exactly fallen on hard times, have they?

Comparing us with the scum financially is absurd. We have the potential to be right up there with them, but we're far behind right now. They can only take risks on what we could achieve, but I doubt that banks will be taking that pill. The stadium as a revenue source is the guarantee.

[Johnny]

they said they had the money and then transfered debt from one of their other business' aparently anyway...same as glazer at munich

This is getting tiresome,grow up!!!!!

[rushscored4]

they said they had the money and then transfered debt from one of their other business' aparently anyway...same as glazer at scum

The scum haven't exactly fallen on hard times, have they?

Comparing us with the scum financially is absurd. We have the potential to be right up there with them, but we're far behind right now. They can only take risks on what we could achieve, but I doubt that banks will be taking that pill. The stadium as a revenue source is the guarantee.

It is a similar situation to Man United but with smaller figures. However, the main reason for building a new stadium with a 15,000 to 25,000 bigger capacity and more executive boxes is to substantially increase matchday revenue.

Probably a better comparison is Arsenal who borrowed heavily to build Ashburton Grove but their matchday revenue has increased massively (higher than the Mancs) so they can service the extra debt and still make more profit.

I'm not suggesting we will get the same matchday revenue as Arsenal or United but we will be a lot closer than we are now as both are probably generating twice as much as us each match.

[Pablo]

How ****ing dare they complete a business transaction?

They hate our club, they hate Rafa. We've sold our soul to the devil.

Chill out dude, talk about an over-reaction!

[sonsofthedesert]

It is a similar situation to Man United but with smaller figures. However, the main reason for building a new stadium with a 15,000 to 25,000 bigger capacity and more executive boxes is to substantially increase matchday revenue.

Probably a better comparison is Arsenal who borrowed heavily to build Ashburton Grove but their matchday revenue has increased massively (higher than the Mancs) so they can service the extra debt and still make more profit.

I'm not suggesting we will get the same matchday revenue as Arsenal or United but we will be a lot closer than we are now as both are probably generating twice as much as us each match.

We would need about 100,000 to catch up with Arsenal as they charge so much for season tickets and boxes. If we build the 70,000 seaters we hould be able to take more than scum on match day as we should have more boxes. Our pricing structure will be around/slightly higher than utd's fr seats and boxes so ther is a good chance.